Park Summit Sale Approved By Court

A Federal Bankruptcy Court judge on Wednesday approved the sale of Park Summit, a retirement complex in Coral Springs, to an Indianapolis retirement home developer for $18.1 million.

Forum Florida Health Care Inc., which was chosen the best of about 70 bids last month, raised its original offer of $13.36 million to come out the winner among a half-dozen additional bidders Wednesday.

The bid price, however, is slightly more than half the face value of the $36 million in tax-exempt Broward County bonds Park Summit defaulted on last May. Bondholders could receive more than half of their original investment if the deal is completed, said bankruptcy attorney Jeffrey H. Beck.

Park Summit filed for protection from creditors under Chapter 11 of the federal bankruptcy code Jan. 28. Only about 15 percent of the complex was rented, when about 95 percent was needed to break even.

Park Summit`s default on the bonds - the largest issue authorized by the Broward County Health Facilities Authority - was the first on a Broward County bond issue since the Depression.

Bankruptcy Court Judge Sidney Weaver Wednesday also freed current residents of agreements with Park Summit and allowed entrance fees to be returned to them. Current residents are expected to receive back about 83 percent of the entrance fees, which ranged from $48,000 to $159,000. Twenty-six of Park Summit`s 215 units are occupied. The new owners plan to continue operating the complex as a retirement facility.

The action allowed the sale the freedom from debt required for approval.

Forum Florida Health Care was formed for the purchase of Park Summit by its parent company Forum Group, a publicly held corporation that owns 77 nursing homes and 11 retirement home communities in seven states.

The bankruptcy court also approved a back-up bidder to Forum so that if it is unable to close on the deal, the matter will not have to return to the courtroom.

Accel Investor Properties Inc. of Coral Gables, actually the high bidder with a $18.2 million offer, was approved for the back-up contract.

Attorney Beck said Forum was chosen over the high bidder because of its experience in retirement communities and its stronger financial base.